Bitdeer fell 20%: second-quarter losses wiped out all the growth
Shares of mining company Bitdeer (BTDR) plunged to their lowest levels since late March on Tuesday. The reason — second-quarter results that disappointed investors: the net loss came in significantly above analyst forecasts, and revenue fell short of consensus estimates.
Financial metrics: revenue growth doesn't save the day
For the quarter, the company posted a loss of $0.37 per share, while the market had expected $0.32. Revenue reached $228.8 million, also below the projected $231.16 million. At first glance, the revenue trend is impressive — up 47% year-over-year (from $155.6 million). However, operating costs grew even faster: cost of revenue jumped to $237.3 million, directly tied to electricity expenses and equipment depreciation.
The company's net loss widened to $92.3 million, compared with $62.9 million a year earlier. Moreover, Bitdeer swung from a gross profit of $12 million to a gross loss of $8.5 million. This marks the second consecutive loss-making quarter: in the first quarter, losses totaled $159.5 million. Thus, despite aggressive scaling, the business has yet to reach operating breakeven.
Mining grows, but costs eat everything
A positive note remains the multi-fold increase in production: the company mined 2,694 BTC, versus 565 BTC in the same period last year. Revenue from proprietary mining nearly tripled — from $59.3 million to $168.4 million. Adjusted EBITDA also improved: from $4.6 million to $31.1 million. An additional driver — cloud AI services, which brought in $14 million in revenue, compared with a modest $1.3 million a year earlier.
Bitdeer's CFO called the reporting quarter "a step forward for the business," highlighting the synergy between mining and the launch of the SEALMINER equipment fleet. The company continues to build a vertically integrated structure — from energy generation to its own hardware and AI infrastructure.
The market punished ambition
However, such arguments failed to convince investors. BTDR shares fell 20.08% on Monday, closing at $8.70 — a four-month low. Notably, in the second quarter, the stock rose about 83%, even outpacing bitcoin, but since the start of July it has already lost 43.7%. Yesterday's decline completely wiped out all the gains of previous months. Bitdeer's next report is due in November.
My take: this is a classic case where the market assesses not current growth rates, but the company's ability to generate profit. As long as Bitdeer spends enormous resources on expanding capacity and its AI division, operational efficiency remains in question. Amid bitcoin volatility and growing competition in the sector, this approach carries serious risks for shareholders. Investors should wait for confirmation that investments are starting to convert into positive cash flow before considering a purchase at current levels.